I am struggling to write my onw trading plan

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DanPickUp

DanPickUp

Well-Known Member
#1
#1
Hi

This thread should be a help to those people, which struggle to write down a trading plan. I am sure, many have gone a way I describe here and have stranded where they stand now and no more move. Many have heard about trading plans and how many times did we read about it here in Traderji. All this traders say : If you not have a trading plan, you will not succeed and other such difficult things. On the other hand, I see all this traders here which seem to make profit day for day and give tips and they never talked about such plans. :confused: What should I do ?

Should I believe them about there stuff about this trading plan and if I do, how to write such a trading plan ?

Hmm, I have an idea :D. I will search for a thread, which will show me how to write such a plan and then I am a successful trader :!.

After I have found so many trading plans here, I even have more questions. Which one is the best trading plan and I get confused again about what they all say is important in this trading plan for them ? How should I start ? What do I need from all that for my trading plan ?

Is there some where a simple list which I can use to define, what I need in my trading plan, as all this big plans with so many topics are to big for me :(

DanPickUp
 
DanPickUp

DanPickUp

Well-Known Member
#3
#3
Hi

How to move on ? How many pages should it take to write down such a plan ?

We look for a simple checklist, which will allow us to make simple and clear decisions. Sir Simon T, a day trader, has shown me once his checklist and I will show it here, as I have shown it in an other place. This checklist is divided in different parts and you can work slowly through it. Each part will have only a few topics which are most important. There may be other items specific to your type of trading that also need to be covered, so treat this as a checklist of the minimum requirements of your plan and post your thoughts when ever you feel. If you think there is need of an add, post it.

I can give you this ideas from Sir Simon T ( which have been very useful for me ) and the rest must be done by your self. If you struggle some where or land on an island, where you feel, you no more can leave, here is the place to ask.

Here an overlook about the coming :

- 1 Introduction & Objectives
- 2 Basic Trading Parameters
- 3 Market Dynamics
- 4 Trades
- 5 Exit Strategy
- 6 Money Management
- 7 Worked Examples

That's it !

Point Nr. 1 Introduction & Objectives :

-Write down an overview of your trading style, time input, infrastructure requirements, what brokers you use, your profit objectives and capital requirements.

Keep it short and stay for the moment only with that items from point one. The rest will be done step by step.

DanPickUp
 
DanPickUp

DanPickUp

Well-Known Member
#4
#4
Hi

If you may started to write down your first thoughts about your coming trading plan, have this in mind :

#The most important thing is completion and not perfection.#

If this is your first trading plan you ever write down, it is more important to finish it in a certain time. Later on when you use this plan, you still can complete certain details in it, which you any way only will recognize when your plan is implemented in the real market. Trading by it self is nothing perfect and so will be your trading plan, how ever your plan will be. Your trading plan should become a document that you can use, that is understandable and that sets out your plans in a way that you can judge whether you are following your plan.

When you have more trading experience, you will write down new trading plans and they will be better than the first trading plan. I mean, if you the first time installed a program on your new laptop, how much did you know about what kind of problems you are going to face. After installing a few more programs, your skills had improved as you had an idea about what you will face. The same will be by writing down a trading plan.

Coming back to point one in your trading plan :

- Overview of your trading style
- Time input
- Infrastructure requirements
- Brokers you use
- Profit objectives
- Capital requirements

I wrote down just an example to give some help to those which may are stuck about what to write. The infrastructure requirements is a point, which is very important in trading. If this fails, you are out of the game.

Write down your profit objectives, as it is in your head for the moment. Also the capital requirements as it is at the moment. When we work through point six of the list, you will see if it is realistic. So here the example :

I want to trade stocks. With the money I make, I will finance the high school from my daughter.

I can spend weekly three hours on that, as I have a lot of other stuff to do. My wife may will help and then I could spend six hours weekly for trading.

I have a laptop with three batteries, as we many times have a problem with the electricity. I have a handy with two batteries and a direct telephone line. I can go on line through wireless and I can go on line through the telephone line.

My broker is ............., as he has very low commissions and a good data feed, which I can afford. We even can communicate through Skype.

I would like to make ........................every month, so that I have in two years an amount of ............................to pay the high school from my daughter.

I transfered .............................to my broker, as he asked for that amount.

That's it for the moment and post when ever needed or ask or bring up adds you feel are important.

DanPickUp
 
M

marimuthu13

Well-Known Member
#5
#5
DanPickUp said:
Hi

If you may started to write down your first thoughts about your coming trading plan, have this in mind :

#The most important thing is completion and not perfection.#

If this is your first trading plan you ever write down, it is more important to finish it in a certain time. Later on when you use this plan, you still can complete certain details in it, which you any way only will recognize when your plan is implemented in the real market. Trading by it self is nothing perfect and so will be your trading plan, how ever your plan will be. Your trading plan should become a document that you can use, that is understandable and that sets out your plans in a way that you can judge whether you are following your plan.

When you have more trading experience, you will write down new trading plans and they will be better than the first trading plan. I mean, if you the first time installed a program on your new laptop, how much did you know about what kind of problems you are going to face. After installing a few more programs, your skills had improved as you had an idea about what you will face. The same will be by writing down a trading plan.

Coming back to point one in your trading plan :

- Overview of your trading style
- Time input
- Infrastructure requirements
- Brokers you use
- Profit objectives
- Capital requirements

I wrote down just an example to give some help to those which may are stuck about what to write. The infrastructure requirements is a point, which is very important in trading. If this fails, you are out of the game.

Write down your profit objectives, as it is in your head for the moment. Also the capital requirements as it is at the moment. When we work through point six of the list, you will see if it is realistic. So here the example :

I want to trade stocks. With the money I make, I will finance the high school from my daughter.

I can spend weekly three hours on that, as I have a lot of other stuff to do. My wife may will help and then I could spend six hours weekly for trading.

I have a laptop with three batteries, as we many times have a problem with the electricity. I have a handy with two batteries and a direct telephone line. I can go on line through wireless and I can go on line through the telephone line.

My broker is ............., as he has very low commissions and a good data feed, which I can afford. We even can communicate through Skype.

I would like to make ........................every month, so that I have in two years an amount of ............................to pay the high school from my daughter.

I transfered .............................to my broker, as he asked for that amount.

That's it for the moment and post when ever needed or ask or bring up adds you feel are important.

DanPickUp
Click to expand...
Simply suberb ..expecting your next post very eagerly
 
A

AW10

Well-Known Member
#7
#7
Thanks DanPickUp for starting this thread on one of the most important topic. Not have a plan, is one of the top reason behind failure of many traders.

In trading, most important aspect is YOU.. You the trader. In my view, any trading plan needs to have some section to address this. For me this section was getting too big so I have transferred that to another subplan.

My suggestion to anyone who is starting to draft a plan is to Just Do It. Start with something as basic as possible..and let it evolve over a period of time. This document will be living doc..not a document (like constitution of country) which is once written, is difficult to change and become too detailed to implement on day-to-day basis.
Don't be afraid to spin-off a section into a seperate document, if that helps you in day-to-day implementation. Important is to have a plan to guide you in your trading.

All the best and happy trading.
 
IAtma

IAtma

Well-Known Member
#8
#8
this much of long long posts......::!:!:eek:
I will be crazy if I read........

m much better even without a plan.:cool:
 
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